How do I get to calculate compound interest, I have a monthly deposit, with a variable interest, over a variable monthly time. I can see how to do simple interest, but can't fathom out compound interest.
I have tried your suggestion but it states that it applies to • Microsoft Excel 2000 Standard Edition • Microsoft Excel 2002 Standard Edition • Microsoft Excel 97 Standard Edition • Microsoft Excel 95 Standard Edition • Microsoft Excel 95a and I forgot to mention I am running Excel 2007
I've tried your suggestion again. I have put in Cell A1 the title "Present Value , and in A2 inputted the figure £350. In Cell B1 the title "Interest Rate", and in B2 5.05 (manually inputted. In Cell C1 ihave the title "Time", and in C2 I have manually inputted the figure 1. In D4 I have put the formula =A2*(1+B2)^C2. The figure given in that cell is 2117.50
That is only calculating for 1 period, whether it is a month or a year.
This particular formula only calculates for the amoount that is in NOW.
How can I adjust the calculations if I put in £350 every period for say a period of 31, with the same interest rate, but compounding the interest so that the amount of interest is added every time period